Talking About Money & Saving – Part one…

Money is an important thing in our lives, because it helps us to make life more comfortable, to build a lifestyle and social status.

And that’s exactly why we spend a lot of time working, trying to earn more and more.

Since money is spent much faster than it is earned, and earnings are not always certain, it would be reasonable to try to save at a time when we are making money, so that we have something to spend in the rainy days.

By prudent income planning, or our ability to save, we provide a minimum level of security so that we can cover our subsistence costs.

The adopted habits

In everyday life, even when we trust we are spending money to buy the things we need. However, most of us tend to overlook the fact that more than 50% of spending has gone to purposes that are quite unnecessary. Very often these costs can be avoided without affecting our basic lifestyle. This is exactly the point from which to start thinking about saving money.

It is certain that you clearly understand and distinguish your needs and desires. “Needs” are the things you need to maintain your basic needs. “Desire,” on the other hand, refers to anything that is not an absolute need, but which by its presence improves one’s way of life. For example, if a $25K car can serve as much as a $50K car then the first one is a necessity and the second one, a desire.

It is human nature to insist on the best and the greatest, even if the same quality is available at a lower price.

What we can change?

Spend $100 at a posh restaurant if you can afford the same sumptuous meal for $20.  If you decide to buy a $20 shirt instead with a designer label for $30. All of these cases fall into the old saying “keep up with the Joneses” category. Smart spending can save a lot, here.

Probably it is good idea to try the merchandise and feel it before you actually buy it. Maybe just to satisfy a desire. You may realise that it is not just what you want; As there is no point in buying something you may never use.

Such an analysis is relevant especially when the subject under consideration is a costly one. The idea that we will use CC to pay and make a good deal looks like a big hoax.

It always turns into “short time pleasure and long-time pain”.

Will be more… stay tune… : )